PRICING GUIDE

PROFORMA
FOR THE

PAINTING TRADE

Developed by Resene Paints Ltd.

In conjunction with Rider Hunt Wellington Ltd.

 Contents
Introduction by Peter Edmonds
1. Painters are Millionaires arent they ? 3

Facts regarding measurement of painting works

2. What you need to know 8

Pricing components explained

3. The Four Cost Centres 9

3a. Prime Cost

Labour and Materials 10

3b. Overhead Costs

Business Expenses 17

3c. Establishment Costs

Job Specific Costs and Risk 18

3d. Profit
This belongs to me !! 19

3e. Summary
Lets put them altogether 19

Measuring Plans and Preparing Quantities

4. A How to Guide 21

Preparation of Surfaces
5. The key to a successful contract 23

Productivity Factors
6. General production rates for various surfaces 24

Conclusion
7. Summary of key points 24

2
1. PAINTERS ARE MILLIONAIRES AREN'T THEY?
In 1909 Arthur Seymour Jennings published "The Modern Painter &
Decorator" which ran to 3 volumes and microscopically dissected and
commented on the trade and its operation.

The work has enjoyed great popularity with serious bibliophiles for its
incredible detail and authoritative style. Early editions command a great
deal of money.

This is ASJ (1909)

"Since a great many master painters supervise most of their contracts
themselves, in addition to carrying on most of the office work, visit actual
and potential clients, take measurements and get out estimates,
interview travellers and order materials, to say nothing of fitting in visits
to decorators' merchants and their showrooms, it is clear that to run a
decorating business with any degree of success is far from being a
restful occupation."

Does this describe you?

or

"Having thus gone through the whole of the specified work, a price can
be found for the prime cost. This, of course, is the amount of money the
job will cost the contractor and is quite separate from profits,
establishment and overhead charges."

Did our trade forget something?

The treatise, which covered every aspect of anything to do with painters

and painting remains in print and has been successively upgraded as
necessary with changes. The basic truths, however, have a prophetic
message for our trade.

I seem, after painting for a long time, to be reputed to knowing a thing or

two but confess, after meeting with many painters the truth is I have also
forgotten a thing or three.

Jennings reminds me that painters operate within rules, invisible at

times, but nevertheless governing the results of our efforts.

Our trade seems comfortable to accept some problems, that are

contingent to painting generally and, on average and with time, never
seem to get sorted.

I have difficulties seeking an explanation but I can set down some of the
problems and in some cases, the solution provided action is taken.

3
After thinking carefully about everything, I comment that my life and
times painting have been rewarding in the extreme, on every level, and
the potential for the young ambitious tradesman to exceed every wish in
life is there for those who use their skills with common-sense and
decency.

I have also, from many sources, collated an exact analysis of costs

associated with painting. The application of the fixed rules will exactly
demonstrate the costs of painting.

No. 1 Painters Problem

"WE MAKE LITTLE MONEY"

And deserve to if they only talk about it.

(a) Most of the business is conducted on lump sum quotes

responding to specifications describing the work.

(b) Some business is undertaken on "time and material' basis.

(c) Some business is on a formalised schedule of quantities, each

measurement applied to a specification of work required.

A typical balance sheet would be made up of revenues derived from a

combination of the above.

Most painters have established hourly rates for tradesmen, usually

inclusive of small tools etc, usually ranging between $25 - $32 per hour.
Additional items including materials, sundries, travel, meals,
accommodation and scaffolding are charged as applicable often with a
plusage on costs. There is hardly anything to go wrong on this system
and painters have a good understanding of the costs on this basis.

The problem of little money is generally explained

"Outrageous competition" "Tough economy"

"No work" "Builders"
"Government" "Poor labour"
"Cost of paint"

These statements are sometimes partly correct but the problem is

caused by costs equalling earnings. This is because the dollar rates for
work per square metre are prime costs.

The "rates" form a painters dialogue (a sort of language) and most

painters are acutely aware of "the rates" in common use in their trading
area
Quote: "If we put our rates up we don't get the job."
justifies exactly why there is no money in painting

4
Although painters can easily follow the build-ups necessary to produce
an hourly rate, very few can follow the assemblage of the elements of
materials and labour that are the factors of a prime cost sum.

At least in 1909 the mathematics specifically commented on the

necessity of:

(a) Prime Costs of Material and Labour

(b) Establishment costs
(c) Overhead costs
(d) Profit

and could exactly explain their vital function.

It is possible to exactly establish the costs of painting a specific surface

or of a specific number of operations needed to meet specific
requirements.

The result is a Dollar and Cents value per square metre and is a Prime
Cost only.

It is the cost of the work, I know the language of painting perfectly, and
many many work packages are awarded for the cost of materials and
labour.

This is why painters have little money.

Try this at home:

(a) Deduct the cost of materials from your earnings.

(b) Add up the number of hours worked.

(Total Sales - Cost of Materials)

Number Hours

(c) Gives the earning rate per hour.

If this is more than your charge out rate pick up the phone and order the
new car or whatever.

If not you are not using (b) (c) (d) of your costings properly.

The cost of paint affecting contract outcomes is a myth. There would

have to be huge paint cost differences to make any significant impact.

I suggest better products, that are available, should be marketed by

Painters
i.e. Make a better job"
"Fantastic colour"
"Environmentally friendly" etc, etc.

5
See the analysis of Prime Costs if you could find a way of increasing
productivity slightly the effect is huge.

If you understand what your costs are the amount of profit (money) you
can make is your business.

No. 2 Painters Problem

"TRADESMEN ARE SCARCE AND UNSKILLED PEOPLE ARE
AWFUL"

Quite true. If you don't have training and also standards of

performance, behaviour and skill this is the result. You can see how
much of the cost of painting belongs to the labour content, so the
problem needs close attention. There are big social changes and our
thoughts should be turning to effective solutions for a perceived decline
in skill levels in the industry.

To a degree better materials are an answer because many are user

friendly.

Our training programmes and most planning is deficient.

Make up a list of all the elements and things that make up a job.

Record each routine on jobs and think about better ways.

You know, on the job I often see the Boss driving the airless spray.

Why isn't someone trained (with no previous skills) to do this?

The mechanics and the work patterns are, after all, quite different from
trade painting.

The mechanical responsibilities are small and the satisfaction levels with
minimum training are huge.

- Get real boss!

Reduce every function to a system or process.

Be aware: Labour is the cost of painting, end of lesson.

No. 3 Painters Problem

WE NEED MORE EFFECTIVE MARKETING

Many painters express a desire to obtain more advice to be able to

present themselves as better painters and businessmen to enhance
customer relationships. There are below average (I believe) levels of

6
self-esteem amongst painters and attention is given to innovative
advertising, getting an edge etc.

I think broadly there are two different issues:

(a) Painters/Customers
(b) Painters/Painters

There seems a lack of partnership confidence between painter's and

their customers.

Good job descriptions, clear quoting advice and positive actions are
necessary.

Submitting the quote on time works pretty well too.

Customers really don't like a protracted complicated process of sorting

out the job, then being told "thanks but we're too busy for ( ) months
now."

Painters need a tidy up nationally.

Individual presentation (i.e. to be better than the others) is over to you

and once again is bigger than you. You know, a tidy looking industry is
confidence building.

No. 4 Painters Problem

COMPLIANCE ISSUES - OSH, QUALITY SPECIFICATIONS,
LICENCES, TAX, ACC

Lots of painters get grumpy. I say get happy and licence everything.

The harder we can make it to be a qualified painter the better are our
opportunities.

All the rest is laziness.

No. 5 Painters Problem

COLOUR

I have been baffled by Painters who work with colour, but deny any
authority for its use.

Pathetic - Fortress Resene lives on colour - not paint.

Interior designers charge a bit (lot) more than painters for colour choices
- you know - $100's per hour.

7
 There's so many problems, charges, the opportunities are limitless.

So What's Wrong?

The problems painters' face are not new, and my research suggests that
"the problems" may be part and parcel of our trade. That they seem to
be worse may be that although its bad now, we seem to be able to only
remember the sunny summers, not the rainy days, and the problems we
perceive could easily be a contingency of our trade.

Personally, I always found the problems a huge advantage, because it

is actually quite simple to be better than average in these
circumstances.

We are absolutely, as painters, "little" businesses and as such can be

whom we want to be if we try harder.

Peter Edmonds 2001

2. WHAT YOU NEED TO KNOW

The following chapters have been written to try and provide you with a
true method of establishing all the costs of painting (on a historical
basis) and collating them into a system that will forecast future contract
results.

This is fairly important because the painting industry runs on quotes for
work that will be undertaken and completed in the future. On large
projects you may be quoting 2 or more years before actually starting on
site.

The singular problem painting and decorating faces collectively is that

the industry does not comprehend costs and lack of money provides a
happy breeding ground for all the other problems and excuses.

The Painting and Decorating Industry traditionally operates on the

system of quotations for work packages. These quotations are
assembled from various information sources that are derived from
averages of time, materials and resources used to undertake the work.

It has been quite possible to further develop a system condensed to a

unit price per square metre for most of the common activities and
requirements.

Method of Measurement
The measurement of surfaces and their description has been formalised
into a standard method of measurement carefully described by the New

8
 Zealand Standard NZS4202. This was last updated in 1995 and is under
continual review.

This is the common measurement format almost always used by

Quantity Surveyors to produce a Schedule of Quantities. Measurements
and descriptions prepared using this document will state conformance
with NZS4202.

There can be and are other (shortened) and condensed versions and
most people have their own system of measuring out and collating
elements of work. In fact, schedules of quantities are essential to
properly measure any area of work.

The general practise is that surface areas under 300mm wide are
measured as metres run (linear) and over this width, the measure is
length x height or square metres.

Objects by shape, texture and other peculiarities are usually described

as such and collated (or counted) as an item. A rainwater head is a
good example.

Generally all surfaces are measured as flat surface areas and no

account is taken for surface variations, and the estimator must be
aware of this.

Examples are:

1. Corrugated iron has 10.5% more surface area than flat measure.

2. Trough sections roofing has 50% more surface area than flat
measure.

3. Stucco finishes can be easily 40% more than flat measure.

Therefore a schedule of quantities is a descriptive measure of flat

surface areas and probably a number of individual objects detailing the
work processes and is completed by inserting costs for each element at
a unit rate multiplied by the measured quantity taking surface variations
into account.

Thus it looks like Unit Qty Labour Materials Total

Item 1. Prepare, seal and apply 2 M2 100
coats low sheen acrylic to
Gibraltar board wall lining

Item 2. And so on

With naturally a Total

9
 3. THE FOUR COST CENTRES
To be able to properly build up suitable rates for inclusion in a schedule
of quantities or such like we must first consider what costs we must
allow for.

Firstly we would have the actual cost of materials and labour to carry out
the described process. These are the costs associated with material
purchase and labour costs and are known as PRIME COSTS.

It does not give the degree of difficulty i.e. that it is 18 metres high, nor
does it include all the other costs needed to run your business.

To these PRIME COSTS are added:

(a) Overhead costs of your business. what expenses must I cover ?

(b) Establishment costs of the job Specific job problems and risks ?

(c) The profit you need to make it all worth while !

Therefore to properly allow for the work package each element has to
be addressed:

1. PRIME COST
2. OVERHEAD COST
3. ESTABLISHMENT
4. PROFIT

These can then be expressed as a consolidated or built up costing,

which is actually an average for all circumstances on a specific job. A
proper method, for complete consideration, is to leave the steps
separate. This enables one to allow properly for average degrees of
difficulty and the profit factor can be used to meet the market.

3a. PRIME COSTS - Labour & Materials

The Painters Great Curse is that PRIME COSTS win jobs because this
is the commonly discussed and applied rate for quotations.

HOW DO WE FIND OUT THE ACTUAL PRIME COST?

10
 MK2 BULLSEYE

OTHER GOOD ESTIMATING SYSTEMS

WE GUESS
AGAIN, THAT'S HOW.
THESE SOMETIMES WORK.

The paint you use has a recommended Theoretical Coverage statement

expressed as area per litre.

This is derived from the manufacturers considered spreading rate to

achieve the best results.

The spreading rate can be calculated by using the volume solids content
of the material against the optimum thickness required for the best
results.

This is therefore perfectly accurate provided that is all we have to

consider, but obviously the surface profile is a factor and whether the
paint is applied thicker or thinner than recommended is also a factor to
consider.

Because the volume solids are the actual content of the dry paint film
the higher the volume solid content the further it would spread either in
thickness or area is true.

For painting surfaces such as steel to protect against corrosion it is

vitally important to know the volume solids of the coating to accurately
control the rate (thickness) of application because the life of the
protection depends on the coating thickness as specified.

Decorative painting on surfaces that do not depend on coatings so

exactly for protection obviously are less sensitive to these requirements,
but here we are establishing the material cost of the paint per square
metre of surface, and most manufacturers are stating an application
rate per litre that is calculated at optimum application conditions and flat
surfaces. (They want to look good.)

Therefore a prudent estimator would average the spreading rate

somewhat downwards to allow for variable surfaces (not too much) and
loss (of paint) factors.

A practical man would measure his efforts actually painting and form
his own conclusions as to the area covered per litre.

Fortunately many people have already done so and for the Prime Cost
the material can be calculated using a Spreading Rate @ 90% of the
recommended area per litre. (Remember for peculiarities of measure
such as corrugated iron, stucco, this is the mathematics of our measure
and the differences added as necessary.)

11
 The Cost of Material per litre = Cost per m2
by Area Covered per Coat

Which is easy to figure out:

If Sealer costs $8.50 per litre
and covers 11m2 per litre it costs 77 cents for every m2

AND
If Low Sheen costs $7.00 per litre
at 2 coats each covering 12m2 per litre it costs 58cents x 2 = $1.16m2

AND
The total cost of material for Sealer and 2 Coats = $1.93

This is not a great deal, and the total cost of materials is much the
smallest part of a painters revenue from painting. Quite often the cost of
materials are less than the fixed overheads.

The Prime Cost for the application of the material (Labour) can also be
calculated by finding out from timing the process and multiplying this by
the amount paid in wages.

This is somewhat compromised by the fact that no two people work at

exactly the same rate, and common-sense directs us to averages we
derived from lots of measurements. This includes extensions of time
and the common-sense average is the output of painting over the
average working day.

On Flat Wall areas the average output seems to be 100-130 square

metres per coat per day and there is general agreement amongst the
trade that 9 hours produces about 100m2 and accordingly the hours
divided by the amount gives a constant factor:

i.e. 9 100 = 0.09 factor

on 100m2 x 0.09 = 9 hours

The time divided by product

= Factor per m2 of Task

To this we add on a similar factor for preparation, sanding and filling,

and consensus and averages would seem to agree around one third of
the productivity rate of painting on a factor 0.03 (9/3 = 3).

For new work a Labour Factor of 0.12 represents an average of all

tasks per coat.

Consideration of other tasks will produce differing factors.

12
We now have to establish the true cost of Labour per hour and this is
multiplied by the factor.

Labour Calculation (@ $15.00 per hour)

Ordinary Time 45 hours x $15 = $675.00

1. Add Holiday & Sick Leave (+13.5%) 91.13

2. Public Liability Insurance

ACC & First Week Liability (+5.8%) 39.15
________
Sub Total $775.28

Divide by Productive Hours

$775.28 43.33 = 17.90
(Deduct smoko time each day)

Add Tool/Travel/Brushware 1.00

______
True Labour Cost per Hour $18.90

CALCULATION SHEET

EXAMPLE A

Holiday Pay & Sick Leave Calculation

Total Weeks - (Including Leap Year) 52.14 Weeks

Annual Holidays 3.00 Weeks
Statutory Holidays 2.20 Weeks
Sick Leave 1.00 Week

Total Non-Working Time = 6.20 Weeks

Total Weeks 52.14 Weeks

Non Working Weeks 6.20 Weeks

Total Weeks Worked in Year = 45.94 Weeks

6.20 x 100 = 13.50% (Holiday Pay & Sick Leave Calculation)

45.94 1

13
EXAMPLE B

Public Liability Insurance, ACC Levy

Public Liability is usually based on taxable wages paid. 1% is allowed,

but the rate will vary depending on risk.

ACC Levy is set by regulations at 4.29%.

The employer is liable for 80% of wages for the first week of
employment related to accidents.

Public Liability 1.00%

ACC Levy 4.29%
1st Week (Employer) 0.50%

Percentage Addition for Insurance and Levies 5.79%

EXAMPLE C

Tools/Brushware and onto the job is a cost of Labour and must

therefore be included. This is a traditional build up based on annual
cost. $1.00 per hour

Therefore using the factors we have calculated, the rate for material and
labour can now be worked up.

Example: Apply 1 coat Acrylic Sealer and 2 coats Low Sheen to

100m2 Gib Walls

(Note: By using 100m2 for establishing Cost prices for differing

tasks quick results per m2 are simple.)

UNIT QUANTITY FACTOR TOTAL

M2 100 Material
(0.77 + 1.16)
= 1.93 x 100 193.00
2
M 100 Labour
(0.09 + 0.03)
.12 x 3 coats
= 0.36 x 100
= 36 x 18.90 680.40
TOTAL PRIME COST $873.40
OR $8.73M2

And therefore if the painting of doors and frames, for example average
differences in material and production, a cost factor can be established
to provide a Metre costing.

14
FIXED ON LUMP SUM LABOUR UNITS

It is quite common to subcontract the labour package (and the

responsibility for holiday pay, ACC Levies and sickness, overalls, small
tools etc) as either an hourly or lump sum for the work.

Whilst this fixes the cost of the component of labour, either hourly or
project specific, this is still a PRIME COST and to this must be added
your OVERHEAD factor, the ESTABLISHMENT costs and of course
your PROFIT .

The advantages are in part knowing the actual labour costs and
diminished responsibility for some of the labour needs.

The disadvantages are loss of exact direction of labour, particularly in

resource and quality management and the fact that the Labour Cost
tends to be the Contract cost.

INFLATION

Most contracts these days are let on a fixed price basis, to reduce client
risk, with no potential for contractors to recover costs if the price of
labour and materials goes up during the contract. The recovery of these
potential inflationary costs should be built into your tender quote.

On small jobs the question of allowing for inflation or price rises is not
really an issue, due to the small time frames involved, but large jobs will
require a bit of thought and understanding to ensure adequate cost
recovery.

Both material and labour charges are subject to inflationary pressure,

whether it is buying tins of paint or employing new tradesmen. Both will
cost more if the markets dictate this at the time.

As stated on page 2 of this Guide

The industry runs on quotes for work that will be undertaken and
completed in the future

How far in the future is based on the size of the project, and because
painting is a finishing trade you can expect to be doing your work
towards the end.

Because of this we should make some allowance for inflation within our
quotes at tender. There are a number of cost forecast indices available
and can be obtained from your own bank, The Reserve Bank or the
Dept of Statistics.

15
Inflation over the last ten years has been approximately 1% per year
and is forecast to fluctuate between 1.5 2.0% per year through to
2005.

If it is possible to set fixed prices on labour and material costs up front,

on large projects, then inflation will not be a factor to you, but it will if this
is not an option.

Remember, you will price a job at rates you are using today, but you
should allow for inflation, on top of your Prime Costs, or it will become a
cost you cannot recover when you finish the job in the future.

Inflation Adjustment Example

Using Material and Labour build-ups from pages 13 & 14 of this guide.

On a large job of 10,000m2 of 3 coat work over two years the potential
inflation of your Prime Costs, based on 1.5% movement per year, would
be as follows:

Material : $1.93/m2 x (1.5% movement x 2 years) = $0.06/m2

Labour ; $18.90/hr x 0.36hr/m2

= $6.80/m2 x (1.5% x 2 years) = $0.20/m2

Therefore we should allow an additional $0.26/m2 over and above the

built-up Prime Costs in order to recover forecast inflationary costs over
the 2 years of the contract.

This equates to a total of (10,000m2 x $0.26) $2,600 which is better off

in your pocket than the clients at the end of the contract.

16
3b. OVERHEAD COSTS Business Expenses
Businesses cost money to run and include such things as advertising,
vehicle, telephone, interest, stationary and possibly office wages etc.
These are the non-revenue costs or EXPENSES you generate.

PETER EDMONDS, PAINTING CONTRACTOR

(Gun Contractor employing 5 people with a part timer in
office and leasing a small workshop, running a vehicle and
phone/fax etc.)
1. Accounting 2,150.00
2. Advertising 200.00
3. Bank Fees 600.00
4. Interest 2,000.00
5. General Expenses 1,000.00
6. Office Expenses 1,300.00
7. Insurances 3,100.00
8. Legal Costs 500.00
9. Electricity 200.00
10. Motor Vehicle Costs 9,960.00
11. Printing Stationary 600.00
12. Rent (Lease Workshop) 4,200.00
13. Repairs and Maintenance 900.00
14. Training Seminar 450.00
15. Painting Association 580.00
16. Telephone/Fax/Mobiles 2,780.00
17. Hire of Scaffolding etc. 1,670.00
18. Portabin (Rubbish) 220.00
19. Office Wages 12,600.00
Sub Total 45,010.00
20. Depreciation 1,755.00
TOTAL $48,765.00

17
 The overhead cost is then divided by the Productive hours used during
the same time.

Owner 2370
Painter 2420 (Charge Hand)
Painter 1 2170
Painter 2 2080
Painter 3 2080
Painter 4 2170
13,290 Hours

Therefore, Expenses $48,765

Hours 13,290 = $3.67

AND is 19.42% of our LABOUR PRIME COST of $18.90

Therefore our OVERHEAD FACTOR

can be expressed as +20% of PRIME COST .

3c. ESTABLISHMENT COSTS - Job Specific Costs

These are the particular extra costs you can foresee and add into an
estimate.

These can be:

(a) Scaffolding and other access problems.

(b) Location and travelling.

(c) Accommodation.

(d) Difficult work situations:

i) Hard to get at
ii) Restricted hours
iii) Permit only access
iv) Heat / cold

(e) Risk properly belongs to establishment costs. Obviously the

potential risks (which can also be treated as costs) are greater
to undertake, for example, the preparation and painting of a large
roof between May and September as opposed to summer. Some
Contracts require this timeframe.

Although the Prime Costs do not change, the costs can and do. It is
your job to consider all possible contingencies and decide the cost of
the risk.

18
 Establishment and risk are specific costs and should be totalled and
added to the bottom of a schedule as separate lump sums.

3d. PROFIT - This belongs to me !!

Using PRIME COST

OVERHEAD
ESTABLISHMENT

We know (provided our inputs are accurate) our costs are covered and
therefore profit is simply the amount of money we wish to earn. The
reason for not building it into our rates is that the application of profit
margin can be used competitively and is the only area of our total
price that contains any more than you are earning. The amount can
be 0-100% or more, just as you determine.

Obviously if too great you hardly win tenders, and equally, if you do a lot
of work, your profit margin can be slim.

i.e. 5% of NZ $2 Million
is $100,000.00
15%
is $300,000.00
AND 25% is Half a Million Dollars

AND we have all heard of these profit percentages.

An influence of profit is the volume of potential work and when it is

difficult to obtain enough work, competition ensures tight responses.

Ideally, unless you decide to subsidise the work with your own money,
the profit component is the proper mechanism to adjust your prices to
meet market conditions.

3e. SUMMARY - Lets Put it Altogether

WE WILL USE OUR EXAMPLE (100M2 OF 3 COAT GIB PAINTING)

PAINT SEALER X 2 COATS LOW SHEEN 100M2 GIBBED

Unit Quantity Factor Total
2
M 100 Material
1.930 193.00
2
M 100 Labour 680.40
6.804
1. PRIME COST 873.40
(No allowance for inflation)

19
 2. OVERHEAD 20% + 174.68
3. ESTABLISHMENT
(This was 2.400 stud next door) + 000.00
(OUR M2 RATE IS $10.57) $1057.68
4. PLUS PROFIT (Your Call)

THIS rather exhaustive process is a demonstration of the exact basis of

costing for painting when the areas (quantities) are calculated either for
you (QS Schedule) or by yourself.

Additionally to estimating the costs of a particular painting requirement

estimates can also be based on the experience of painters who can
often, with astonishing accuracy, sum up the total requirements of work
and make a quotation based on experience hard won from their
workings with the trade, often over many years.

Usually they have long experience based again on simple

measurements, but because of flat areas, the domain of the painter has
a certain scale, these folk can speed read the area (and often the speed
readout is in dollars not area), because it is just so familiar.

While this is very pretty to watch, every once in a while this system
provides severe penalties and therefore is not for timid or poor
practitioners.

Obviously this system has advantages on some existing buildings and

structures, because it is rather faster than measuring, but it is useless
when the project is a set of plans or some other description of work.

The conclusion must be that there is a place for both systems, and the
experienced painting contractors almost universally develops skill with
both systems, usually putting a little of each against every proposal.

It is now possible to scan a digital photo straight into a programme, but

because you are already on site anyway to do this, why not at least
check the key elements of measurement and inclusion of all the
requirements.

The obvious great problem of estimating, quoting and general business

is that all too often, the Prime Costs actually make their way onto the
painters market of work, and the only relief available is to just figure out
ways to go faster longer and smarter to stay ahead of loss making
situations. Whilst some people call this market forces, most just don't
know the actual costs.

The analysis provided can be altered if the factors change:

(a) Cost of Material

20
 (b) Cost of Labour

(c) Cost of Preparation (better products)

(d) Cost of Application (better process)

(e) Cost of Overheads

AND adjusted as required but these are costs.

AND PROFIT BELONGS TO YOU

4. MEASURING PLANS AND PREPARING QUANTITIES

You need a good scale at least 1:100, 1:10, 1:5 and there are many
good composite scales.

You also need a good quality adding machine with a quality printer to
quickly run up your quantities.

Method

1. Check scale of drawings and also verify with your scale that the
information is not copied out of scale.

2. Check specifications for verification of requirements and make up

of various paint systems. Some Architects now specify system
numbers directly from manufacturers catalogues, ie. Resene
One-Line Specifications.

3. Draw up a list of items as per plans and specifications as follows:

Item 1. One coat Sealer. M2 R T

2 Coats LS Acrylic.
Gib bd. walls.
Item 2. One coat Primer. LM R T
2 coats SGE.
Skirtings 150 in width.
etc etc, etc etc
You will probably make many
pages.

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 Areas are always Length x Height and are
SQUARE METRES

Objects 300mm wide are usually measured

LINEAL METRES

0-150 } Standard
150-300 } Lineal Metres

Area of a Circle Pi R Squared (TIR2)

(Pi) = 22/7 or 3.14
R Squared = Radius x Radius

Area of Corrugated Iron Flat Area + 10%

Area if Tray Roofing Flat Area + 40%

Older Roofs Flat Area + 40%

(Includes for slope etc)

Often you find that buildings have a common ceiling height, therefore
you can have a running wall measure, aggregating the total length x
height singly.

AND then deduct the door + window measurements from this total, but
include for their paint finishes as necessary.

The assembly is simply a system of tidiness, and you only have to do so

when the project is not supported with a formal set of quantities.

YOU MUST REMEMBER TO LOAD

Overheads
Establishment
AND
Profit

to your PRIME COST

5. PREPARATION OF SURFACES

MASKING COSTS

Masking is a real cost and is quite difficult, if not impossible, to express

as a rate per square metre, but can have a profound effect on outputs,
particularly airless application.

The usual labour equation to both apply and remove tape/marking etc
consumes 1/3 of the productivity as:

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9 hour day products 440 flat metres per coat less 1/3.

So effective masking input = 1/3 factor plumage.

Materials, tape and plastic is a consumable expense and costs $3.50

per 10m wall area if the adjacent ceilings and floors/doors and windows
are protected.

For exteriors (where only window/doors and ground exists) add

$0.50/m2 of wall area. Materials and labour is a reasonable
establishment add on.

EXISTING SURFACES PREPARATION

The preparation of existing surfaces is a specific problem area, and

requires special care and skill to assess and allow for.

The best practice is job specific. Itemise and allow for as an

establishment cost and add in either as a lump sum or reduce to a m2
factor.

Lump Sum Allowance = M2 Rate

Area

The rates require some sound assessment of each task, both in labour
and material requirements, and then the judgement can be easily
worked up into the proposal. The essence of all this is that lump sum
fixed price quotations include for everything you know and allow for
everything you don't know and should include for.

Therefore the better your system the fewer mistakes. You then may not
win every job, but those you do will be worthwhile because everything is
properly allowed for.

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 PRODUCTIVITY FACTORS - OUTPUT PER 9 HOUR DAY

FLAT WALL AREA 100m2 per c per day (Roller)

ALLOW CAPITAL / COST 440m2 per c per day (AS @ 3000 PSI)
MASKING ETC.

DOORS/FRAMES 50m2 per c per day (Brush)

WINDOW FRAMES 60m2 per day per coat (b) (Flat measure over gloss)

B A/S
2
Weatherboards (Flat Measure) (a) Bevel back 65m 230m2
(b) Rusticated 60m2 260m2
(c) Vertical 60m2 200m2

R A/S
* Rough Cast (Flat Measure) (a) Smooth 100m2 400m2
(b) Medium 70m2 250m2
(c) Pebbledash 30m2 150m2

Galvanised Iron (Flat Measure) (a) Roof Roller 120m2

(b) Airless Spray 350m2

* Concrete Blocks (a) Roller 100m2

(b) Airless Spray 300m2

Hardiflex (a) Roller 100m2

(b) Airless Spray 400m2

1st Coat suction/texture difficulties. 50% add on (or 1/2) rate.

7. CONCLUSION
Hopefully the aforementioned method statements are easy to follow and
understand. We believe they will help you to establish, as accurately as
possible, the actual costs and outcome of any proposed painting
project and in turn enable you to successfully undertake and complete
your work.

The methods stated will only provide you with a framework to work
within but will not do the work for you.

This is, of course, an entirely different process.

What it will do is to enable you to methodically prepare a proper forecast

of revenue to properly practise your skills. It will also provide you with

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valuable historical data to analyse jobs upon completion and provide a
ready source of information for your next quotation.

It is now over to you.

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